On January 25, 2023, FinaCom, the Financial Commission, the External Dispute Resolution (EDR) organization, released its 2022 annual summary. The report shows that in the past year, the FinaCom set several new records for customer complaints.
Last year, the FinaCom received a 26% increase in complaints year-over-year, with 3,026 complaints. Of these complaints, 98% were successfully resolved, or 2,968, representing a 27% increase in complaint resolution; 42% of resolved complaints were resolved "in favor of the broker", 16% resolved "in favor of the client", and 52% of cases were outside of the FSC's jurisdiction. The average length of time to resolve each complaint was 5.6 days, the fastest resolution rate since its inception in 2013.
The majority of complaints were related to non-trading issues, amounting to 57.9% of the total, with 28.8% of finance complaints and 13.3% of trading complaints. The topics of complaints were mostly related to account blocking (29%), funds withdrawal (19%) and price check (14%), while other aspects of complaints such as platform issues, stop-out orders, agreement breach and bonus policy were also present.
The amount of money involved in the complaints varies, but the largest number of complaints involved amounts below $99, accounting for about 41%; the number of complaints over $10,000 was less than 250. The average amount per complaint was $4,348, a 33% decrease from the previous year.
In addition, FinaCom said its free dispute resolution service is popular in Asia, Latin America and Europe, with new complaints from these regions up 47%, 38% and 30%, respectively. Complaints from the Middle East grew by 15%. Complaints from Russia and the former Soviet republics decreased by 38 percent due to local markets limits.